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A company produces two products: Product A, Product B. Contribution margin per unit is $10 for Product A and $20 for Product B. The usual
A company produces two products: Product A, Product B. Contribution margin per unit is $10 for Product A and $20 for Product B. The usual sales mix is 3 units for Product A sold for every 1 unit of Product B sold (A:B sales ratio is 3:1). Fixed costs are $84,000 per year. Determine the break-even point in total units assuming the usual sales mix. Select one: a. 4,800 b. 5,600 c. 6,720 d. 7,000 e none of the above
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